​Paying service charges optional at hotels, restaurants: Government

Citing Consumer Protection Act 1986, the department said that a consumer can make complaint if he/she is forced to pay service charges.

Department of Consumer Affairs on Monday said that paying service taxes at hotels and restaurants is not mandatory for customers. The department issued the clarification after receiving a number of complaints from consumers about hotels and restaurants forcefully charging ‘service charge’ in the range of 5-20%, in lieu of tips, irrespective of the kind of service provided to him.

Citing Consumer Protection Act 1986, the department said that a consumer can make complaint if he/she is forced to pay service charges.

The Government has sought a clarification from Hotel Association of India, which replied that service charge is completely discretionary and should a customer be dissatisfied with the dining experience he/she can have it waived off.